E.ON makes it five out of 'Big Six' to cut prices

Five of the 'Big Six' energy firms have now confirmed cuts to prices coming in the next few weeks.

With EDF (5%) , British Gas (5%) , SSE (4.5%) and npower (5%) all announcing price cuts last week E.ON's decision today (January 16) to cut its standard electricity price by 6% leaves only ScottishPower to not have cut bills.

However, while the cuts are welcome news for consumers they are in reality only mitigating heavy price rises bought in last year.

E.ON's cut of 6%, which equals about £312 off the average annual bill, will take effect from February 27.

According to E.ON chief executive, Tony Cocker, 75% of its customers will benefit from the prices cuts.

He said: "Reductions over the last few months in the wholesale price that we pay for our customers' energy have now allowed us to help as many of our customers as possible by cutting our electricity price.

"Whilst we're pleased to pass on this recent slight fall in wholesale prices, most experts agree that global energy prices will continue their long-term rise."

ScottishPower's 2.4m households, who were hit with a 19% increase last year, are still waiting for a reduction.

A spokeswoman told edie energy: "At ScottishPower we are always working to ensure our customers are offered the best available prices and we will continue to review our position against the wholesale market."